Indian shares hit record high as TCS earnings lift IT stocks
- "The earnings have already been surprising and we are bullish on IT, pharma and banking results. Anything to do with digital is doing good. The rally is so strong derailment of this run is the difficult part," Prabhakar said.
BENGALURU: Indian shares rose to a record high on Monday, led by software services exporters after Tata Consultancy Services (TCS), the country's top software exporter, reported strong results and provided an upbeat outlook.
The blue-chip NSE Nifty 50 index advanced 0.67% to 14,442 and the benchmark S&P BSE Sensex climbed 0.74% to 49,145.29 by 0443 GMT.
The Nifty IT index rose 1.9%, with TCS climbing 1.5% to hit a record high of 3,230 rupees after the company on Friday reported higher December-quarter profit and predicted stronger growth ahead.
"The results of TCS and D-Mart have surprised the market. Also, the new US government might increase the stimulus package. These are the reasons the market is very positive," said AK Prabhakar, head of research at IDBI Capital in Mumbai.
Shares of D-Mart operator Avenue Supermarts rose 2.8% after the company reported a 16.4% jump in December-quarter profit over the weekend.
IT major Infosys Ltd was the top boost to the Nifty 50 index, gaining 3.3%, while Wipro Ltd and HCL Technologies advanced 2.6% and 2.9%, respectively, ahead of their earnings this week.
"The earnings have already been surprising and we are bullish on IT, pharma and banking results. Anything to do with digital is doing good. The rally is so strong derailment of this run is the difficult part," Prabhakar said.
Shares of Vedanta Ltd fell 2.5% after the conglomerate's promoters, over the weekend, announced an open offer to acquire 10% stake in the company at 160 rupees per share, a 12% discount to Friday's close.
Meanwhile, Asian shares took a breather while Treasury yields were at 10-month highs as "trillions" in new US fiscal stimulus plans were set to be unveiled this week.
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